Increased Supply Leads to Price Volatility
The cumin market in Gujarat is experiencing increased pressure as new crops begin to arrive, leading to a fluctuation in wholesale prices. This change is primarily due to the higher volume of cumin making its way to the market. Without substantial buying support from stockists in the near future, fears of a market downturn for cumin are intensifying. As a point of interest for our readers, we continuously provide updates on these market shifts, which can significantly impact investment and buying decisions.
Currently, the Unjha market, a significant hub for cumin trade in Gujarat, is witnessing the arrival of new cumin seed batches, estimated between 28,000 to 30,000 bags. This influx follows reports of an exceptional sowing season, with the State Agriculture Department indicating a 103.40% increase in cumin cultivation area compared to last year, reaching a total of 560,800 hectares. This surge in supply, coupled with subdued purchasing activities, has led to a decrease in cumin prices by $1,80 to $2,40, now priced at $72 to $73,20 per 20 kg in Unjha Mandi.
International Competition and Its Impact on Indian Cumin
The global cumin market sees India facing increasing competition from countries like Afghanistan and Iran, in addition to traditional producers Turkey and Syria. Despite the lighter quality of cumin from Turkey and Syria, their combined annual production stands at about 35,000 tonnes. In contrast, India’s cumin production for the first eight months of the previous year (April-November 2023) amounted to 93,502.35 tonnes, generating revenue of approximately $41,78 million. This represents a shift from the previous year’s exports, which totaled 133,291.74 tonnes worth $34,04 million. The evolving dynamics in global cumin production and export are expected to influence the domestic market trends in the days ahead.
Effects of Market Fluctuations on Local Pricing
In the local wholesale grocery market, the situation mirrors the broader market trends, with common cumin prices recently dropping by $1,20 to $2,40, now standing at $3,24 to $3,26.40 per kg, after a previous increase. This price fluctuation reflects the broader market’s reaction to supply and demand dynamics, impacting both traders and consumers alike. The activity levels in the Unjha market, particularly concerning international buyers, have shown variability, with notable purchasing by buyers from Bangladesh in recent times.